Google to shift Pixel production to India by 2027 to reduce China dependency: All details

Google is betting on stronger Pixel demand despite skyrocketing memory chip costs. With the new Pixel phones, it expects shipments to grow, and it's also reported to undergo a major shift in terms of manufacturing strategy. 

Google has reportedly told suppliers that it plans to have all Pixel smartphones, watches and wireless earbuds produced outside China from 2027, according to Nikkei Asia.

Pixel production moves beyond China

Google has been expanding manufacturing capacity in India and Vietnam to reduce its dependence on China, although a significant portion of production remains there.

The successful development and production of high-end Pixel phones in Vietnam this year, which is more complicated than making watches and earbuds, has given Google confidence in the 2027 timeline. If completed, Google would become the second major global smartphone brand after Samsung to move its smartphone production away from China.

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Google has less exposure than Apple because it does not sell Pixel phones in China. Sources also said the company can benefit from the smartphone supply-chain ecosystem Samsung has built in Vietnam. Nikkei had earlier reported that Google planned to shift development and production of high-end Pixel models from China to Vietnam.

Google targets higher Pixel shipments

Google has reportedly told suppliers it plans to increase Pixel shipments by 8% to 10% this year, from around 12 million units last year. The company is pursuing that growth despite sharply higher memory chip prices because it sees Pixel devices as an important gateway for consumers using its Gemini AI applications.

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To strengthen its bargaining position for memory chips, Google is reportedly combining smartphone orders with those for its cloud-computing business while negotiating with Micron, Samsung and SK Hynix.

Pixel gets pricier as rivals cut forecasts

Google recently launched the Pixel 11, Pixel 11 Pro and Pixel 11 Pro Fold, starting at ₹89,999 for 256GB, compared with ₹79,999 for the Pixel 10 with 128GB.

Counterpoint analyst Gerrit Schneemann said Google has been more conservative on price increases than Samsung and Motorola.

Apple and Huawei are also targeting shipment growth despite the chip crunch, while Xiaomi, Oppo and Vivo have repeatedly cut forecasts.

For Indian buyers, the expansion could also make Pixel devices more important in Google's wider AI strategy, particularly as the company pushes Gemini features across its smartphone lineup. With memory chip costs rising globally, however, pricing could remain an important factor for customers as Google attempts to grow its Pixel business.